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Legislation

NAR applauds passage of the ROAD to Housing Act

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Legislation
Monday, October 13, 2025

The Senate passed the bipartisan ROAD to Housing Act as part of its version of the National Defense Authorization Act (NDAA). The housing bill aims to incentivize communities to rethink policies that may inhibit new home construction and small-dollar mortgages.

The Senate broke its gridlock on the NDAA when it voted 77-20 on Oct. 10 to move the measure forward with the housing bill included within the $924.7 billion defense spending bill for fiscal year 2026. The Senate Banking Committee voted 24-0 to advance the ROAD to Housing Act in July.  

A coalition of 28 trade organizations representing the mortgage industry and affordable housing advocates voiced their support for the measure in September, urging lawmakers to bring the measure to the floor for full Senate consideration.

“Today, the Senate took a historic step towards addressing our nation’s worsening housing crisis and bringing down costs for the American people by passing the bipartisan ROAD to Housing Act,” Senate Banking Committee Chairman Tim Scott (R-S.C.) said in a statement following the vote. “This landmark legislation — the first of its kind in more than a decade — takes important steps to boost the nation’s housing supply, improve housing affordability, and increase oversight and efficiency of federal regulators and housing programs. I look forward to working with my colleagues in the House to get the bill to the president’s desk.”

The National Association of Realtors (NAR) Executive Vice President and Chief Advocacy Officer Shannon McGahn issued the following statement after the Senate passed the bill.

“NAR applauds the Senate for passing this bipartisan legislation that addresses housing supply, affordability and homeownership pathways. At a time when homeownership increasingly feels out of reach, this legislation offers meaningful, pragmatic solutions to restore opportunity for millions of American families. We commend Chair Senator Tim Scott and Ranking Member Sen. Elizabeth Warren for their bipartisan leadership on this critical issue. We look forward to working with Congress and the administration to enact this vital legislation and help preserve the American dream of homeownership for future generations.”

Mortgage Bankers Association (MBA) President and CEO Bob Broeksmit also issued a statement welcoming the bill’s passage.

“The Senate’s passage of the ROAD to Housing Act is a win for housing affordability and consumers,” he said. “Many of the provisions within the bipartisan measure are aimed to take meaningful steps to boost housing supply, cut red tape in federal program offerings, and expand access to affordable mortgage credit for families nationwide.”

Broeksmit praised the work of policymakers across the aisle on legislation championing what he referred to as “practical, bipartisan solutions on housing issues.”

“As the bill moves to the House, MBA will stay fully engaged with congressional leaders in both chambers to strengthen key provisions — including those dealing with lender liability and second appraisals — to ensure the final package delivers meaningful results for consumers, lenders, and the communities they serve,” he added.

It is unclear when the bill will come up for a vote in the House as the chamber remains out of session and the federal government remains in a state of shutdown.

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12 USC Section 2605 or Section 6 is titled Servicing of mortgage loans and administration of escrow accounts. It pertains to qualified written requests, notices of transfer of servicing and the administration of escrow accounts.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
12 USC Section 2609 or Section 10 is titled Limitation on requirement of advance deposits in escrow accounts. It governs escrow accounts including notifications and statements to borrowers. Section 10 also sets out penalties for those who violate the section.
RESPA Section 3 provides that a thing of value includes any payment, advance, funds, loan, service or other consideration

Regulation X says thing of value includes: monies, things, discounts, salaries, commissions, fees, duplicate payments of a charge, stock, dividends, distributions of partnership profits, franchise royalties, credits representing monies that may be paid at a future date, the opportunity to participate in a money-making program, retained or increased earnings, increased equity in a parent or subsidiary entity, special bank deposits or accounts, special or unusual banking terms, services of all types at special or free rates, sales or rentals at special prices or rates, lease or rental payments based in whole or in part on the amount of business referred, trips and payment of another person’s expenses or reduction in credit against an existing obligation.
A form used by a settlement or closing agent itemizing all charges imposed on a borrower and seller in a real estate transaction. This form represents the closing transaction and provides each party with a complete list of incoming and outgoing funds. RESPA requires the HUD-1 to be used as the standard real estate settlement form in all transactions in the U.S. involving federally related mortgage loans.
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